Initially it looked like a match made in heaven with Glenn Jenkin’s SPSS Group linking up with Tim Blake’s South Hyde Consulting, given their joint interest in sporting apparel and outdoor activities. It fell apart within months.
Tim Blake promotes hunting and walking tours based out of Kaikoura. Glenn Jenkins specialises in sports, fitness and apparel brands.
The two joined forces in a series of agreements culminating in a 2023 deal seeing Blake’s South Hyde agreeing to put up $200,000 as its share of a limited liability partnership.
The deal quickly collapsed.
At the start, South Hyde was required to front with only $175,000 cash of its promised $200,000; the balance ‘paid’ by way of Mr Blake taking a $25,000 salary sacrifice.
The District Court was told early enthusiasm turned to disillusionment.
Mr Blake was taken on at a $100,000 salary. Mr Jenkins alleged poor profitability was caused by Mr Blake’s overspending and poor decision-making.
For Mr Jenkins, the last straw was Mr Blake’s South Hyde suing to recover its $200,000 investment.
Investment terms gave South Hyde a put option; requiring Mr Jenkin’s SPSS Group to buy it out of the partnership at $200,000 if demanded at any time within the first twelve months.
There was no dispute this put option was valid.
Mr Jenkins countered that Mr Blake’s departure from the business within six months was in breach of his employment contract; damages for poor performance and early departure should be set off against any return of the $200,000 investment.
Mr Jenkins personally argued his case.
Judge Hunt ruled Mr Jenkins had failed to recognise the investment deal was entirely separate from Mr Blake’s employment contract.
Mr Blake’s employment contract, whatever its terms, was between Mr Blake and their investment vehicle of choice: the limited liability partnership.
The put option was between different parties: investors SPSS Group and South Hyde; parties separate from the disputed employment contract.
Terms of their original investment did not set out conditions for employment of Mr Blake.
No counter claim could apply. A counter claim requires mutuality.
SPSS was ordered to pay the $200,000 due South Hyde under its put option, regardless of any separate employment dispute between their partnership and Mr Blake.
South Hyde Consulting & Investments Ltd v. Speed Power & Stability Systems Manufacturing Ltd – District Court (18.11.25)
26.012